Across Australia, more than four million rooftops are now adorned with solar panels. This initiative is designed to harness solar energy produced during daylight hours, encouraging Australians to adjust their energy consumption patterns by shifting some usage away from the high-demand evening period to times when electricity is free.

This development follows a significant milestone where renewable energy outpaced coal as Australia’s primary power source, sparking continued debate over the country’s energy strategy.

According to Energy Minister Chris Bowen, free electricity will be available during midday when solar energy production is at its peak. This move is expected to deliver widespread benefits throughout the energy network.

Bowen emphasized that this scheme will be inclusive, allowing access for all Australians, irrespective of whether they own or rent their homes.

Energy Minister Chris Bowen says the scheme will be accessible to all Australians, whether they own or rent. Source: AAP / Lukas Coch

“People who are able to move electricity use into the zero-cost power period will benefit directly, whether they have solar panels or not and whether they own or rent,” he said.

Other changes proposed for the default offer include restricting marketing and competition costs embedded in prices.

How do you access the Solar Sharer scheme?

It is unclear how energy providers will navigate charging the installation cost, roughly $100 to $200, for homes without solar.

The government is negotiating with other states and jurisdictions to extend the program by 2027.

‘Unintended consequences’ of the free energy proposal

“In developing energy products such as those that offer free energy for a period of time, retailers, and in particular, smaller retailers, need to carefully consider their exposure to the market, their hedging strategy, the impact of network costs, and a range of other factors,” she said in a statement.